UniCredit teams up with French firm for first CoCo ETF
UniCredit and Axiom Alternative Investments have teamed up for what the companies claim is the world’s first dedicated contingent convertible (CoCo) ETF.
The fund, which is formally called the UC AXI Global CoCo Bonds Ucits ETF, is listed on the Deutsche Börse Xetra under the ticker CCNV.
It is will invest in the entire CoCo bond market, including AT1 and RT1 securities. Its performance will track the euro-hedged Solactive AXI Liquid Contingent Capital Global Market TR index.
The companies said that the ETF has been designed to offer a scalable and liquid exposure to the CoCo bond universe. It is the largest CoCo index in the market by capitalisation, with €141 billion in assets.
Commenting on the launch, UniCredit said that the ETF was a major development for its institutional investor base, allowing access to a fast-growing market in a Ucits format.